A Company Had Net Sales of $31,500 and Ending Accounts

question 13

Multiple Choice

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals:

• A) 11.7 days.
• B) 23.3 days.
• C) 31.3 days.
• D) 42.5 days.
• E) 46.6 days.

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Definitions:

Assets

Resources owned by a business or individual, which have economic value and can provide future benefits, such as cash, inventory, and property.

Liabilities

Financial obligations or debts a company or individual owes to others, which must be settled over time.

Federal Tax Requirements

The obligations set by the federal government regarding the filing and payment of taxes by individuals, businesses, and other entities.

Cash Balance

The amount of money on hand or in bank accounts, immediately available to a business or individual.